NAME: Nullas, Stephanie Claire P.

MIDTERM EXAM FOR LAW 101

OBLIGATIONS AND CONTRACTS

A. Direction: Kindly Read each questions carefully and Provide the Correct Answer.
MULTIPLE CHOICE (MCQ) 25 items x 2 points = 50 Points

1. Those which are demandable at once, no condition imposed.

a. Alternative Obligation
b. Obligation with a Period
c. Obligation with a Penal Clause
d. Pure Obligation

2. One which is demandable at once, but the happening of an event would

extinguish the obligation
a. Suspensive
b. Resolutory
c. Potestative
d. Casual

3. Depends upon the will of the Debtor.

a. Suspensive
b. Resolutory
c. Potestative
d. Casual

4. Whose where acquisition of right or extinguishment or loss of those already

acquired shall depend upon the happening of an event which constititutes the
condition.
a. Alternative Obligation
b. Obligation with a Period
c. Conditional Obligation
d. Pure Obligation

5. The Happening of the event gives rise to an obligation

a. Suspensive
b. Resolutory
c. Potestative
d. Casual

6. Depends upon chance or hazard or will of the 3rd person

a. Suspensive
b. Resolutory
c. Potestative
d. Casual

7. Capable of partial performance

a. Joint
b. Alternative
c. Divisible
d. Facultative
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Atty. Rufino T. Lopez / 11.12.2022 Lourdes A. Deocariza / 10.12.2022
 NAME: Nullas, Stephanie Claire P.
8. Division of the object may not be feasible, but division in spirit of the law may be
applied.
a. Joint
b. Alternative
c. Indivisible
d. Facultative

9. The Year 1993 in Philippine Coin refers to its:

a. Minting Year
b. When it was introduced in the country
c. The Bangko Sentral ng Pilipinas was established
d. When the Central Bank of the Philippines was established

10. Which amongst your obligation to pay is more onerous, and thus application of
payment must be applied first.
a. Penalty
b. Interest
c. Principal
d. Advance Payment

11. This requires Plurality of Creditors, Universality of property that all your remaining
Assets may be distributed to your Creditors when settling your obligations.
a. Dation en Pago
b. Tender of Payment
c. Payment in Cession
d. Application of Payment

12. Which amongst the choices is not proper; “Loss of the Thing Due, when object or
prestation is either:”
a. Perishes
b. Misplaced
c. Goes out of commerce
d. Disappears and its existence is unknown

13. I will pay you after I have sold my house. This is a type of condition which is:
a. Potestative
b. Casual
c. Mixed
d. Indivisible

14. When a Person had met and accident, his compensation to his injury emanates
from:
a. Conventional as stipulated by the Parties
b. Law
c. Judicial Order
d. Resolutory

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Atty. Rufino T. Lopez / 11.12.2022 Lourdes A. Deocariza / 10.12.2022
 NAME: Nullas, Stephanie Claire P.
15. To avoid further interest on the Sum of Money payment to the Creditor, such
may be:
a. Deposited in your own account
b. Tender of Payment to the Creditor
c. Consigned in Court
d. Stipulation on parties will prevail

16. Substitution or change or an obligation by another, resulting in the

extinguishment or modification, either by changing the object or principal
conditions, or by substituting another in place of debtor, or by subrogating a 3rd
person in the rights of creditor.
a. Compensation
b. Loss of the Thing Due
c. Remission
d. Novation

17. Manifestation made by debtor to Creditor of his decision to comply immediately

with his obligation.
a. Consignation
b. Tender of Payment
c. Payment in Cession
d. Application of Payment

18. Deposit of the object of the obligation in a competent court in accordance

with the rules prescribed by law after refusal or inability of the creditor to accept
the tender of payment.
a. Consignation
b. Tender of Payment
c. Payment in Cession
d. Application of Payment

19. Property alienated by the debtor to the Creditor in satisfaction of the debt in
money.
a. Payment in Cession
b. Dation in Payment (en pago)
c. Application of Payment
d. Compensation

20. Obligation is extinguish because the characters of the Debtor and Creditor has
now been merged in the same person.
a. Compensation
b. Confusion
c. Facultative
d. Condonation

21. Act of Liberality of the Obligee, who without receiving any price or equivalent,
renounce the enforcement of obligation.
a. Confusion
b. Remission
c. Compensation
d. Novation
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Atty. Rufino T. Lopez / 11.12.2022 Lourdes A. Deocariza / 10.12.2022
 NAME: Nullas, Stephanie Claire P.
22. Jane owes Jebyn P2,000 guaranteed by a Promissory Note that Jane will pay
the loan amount by October 5, 2022. Comes now October 4, 2022, Jebyn gave
back the Promissory Note to Jane, saying … “uy sa iyo na itong sulat”. What
does this gesture means.
a. Confusion
b. Remission
c. Compensation
d. Novation

23. One of the elements here does not pertain to Remission.

a. gratuitous
b. accepted by Obligor
c. demandable
d. Inter Vivos

24. Accessory obligation attached to a principal obligation, for the purpose of

insuring the performance of the principal obligation. (to compel obedience
from the obligor).
a. Obligation with a Penal Clause
b. Alternative Obligation
c. Solidary Obligation
d. Joint and Several.

25. This condition is understood by the Parties thru Inference and Implication,
although not written, can be seen from their acts.
a. Positive
b. Negative
c. Implied
d. Express.

B. True or False. Write TRUE if the sentence is correct; and Write FALSE and the
correct answer if the sentence is misplaced. 10 x 2 Points each = 20 points

26. Resolutory Condition is when the obligation becomes demandable only upon
the arrival of a day certain. False – Obligation with a period.

27. Obligation is presumed to be SOLIDARY if there is concurrence of 2 or more

debtors and/or 2 or more creditors in same obligation. True.

28. In Legal Application of Payment, the debt which is more FAVORABLE to the
debtor, amongst which are due shall be deemed to been satisfied. False -
burdensome, or onenerous

29. Payment or Performance is where the object or prestation is either, perishes,

goes out of commerce of man or disappears in such a way that its existence is
unknown or it cannot be recovered. False – Loss of a thing due

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Atty. Rufino T. Lopez / 11.12.2022 Lourdes A. Deocariza / 10.12.2022
 NAME: Nullas, Stephanie Claire P.
30. Loss of the Thing Due must be gratuitous. False - Condonation.

31. Tender of Payment is the deposit of the object subject of obligation in a

competent court. False - consignation

32. Inter Vivos are remission constituted by agreement upon death of the Testator.
False – Mortis Causa.

33. Mortis Causa are remission constituted by agreement during the lifetime of the
Testator. False – Inter Vivos

34. Partial Compensation when both obligations are completely extinguisehed,

because they are of the same or equal amounts. False- Complete
Compensation.

35. Total Compensation when a balance remains in compensation. False – Partial

Compensation.

C. Situational Analysis: Kindly Read each questions carefully and Provide your
reasons and basis of law. 30 Points

36. Czarina, a socialite girl based in Laguna owes 2 houses in Santa Rosa Estates
amounting to P20M, a 5 hectare lot in Quezon Province amounting to P9M and
a Poodle Rest House with her Poodle worth P1M. Czarina’s total Asset amounts
to Php 30Million as of 2021. But she owes Vlad Bank an amount of P 25M and is
now due and demandable. Czarina has no more available Cash to spare. What
can you recommend to her in order to Extinguish her obligation. (5 points)

- To extinguish Czarina’s obligation in Vlad Bank, she can use her properties
such as her houses and land property as a substitute to pay her obligations.
This is according to dation en pago where the property can serve as a
payment or substitute in case the debtor doesn’t have enough cash to pay
her obligations.

37. A, B and C owes Bishop an amount of P15Million whom they have borrowed
jointly and severally. However, the Son of Bishop named M will be marrying B
soon, thus Bishop advised B not to settle the obligation imposed upon her. (10
points)
Question:

a. May Bishop demand the entire P15M from A? Explain with reason.
- Yes, Bishop has the right to demand the entire P15M from A because they all
agreed in solidary obligation where the creditor has the right to demand his
rights with entire compliance while the debtors has an obligation to render an
entire compliance to the creditor immediately.

b. What kind of benefit did Bishop gave to B? Explain with reason.

- The benefit that B will have when B and Bishop got married is that her
obligation
Prepared By/ Date (Facultyto pay would be extinguished
Member) and
Reviewed By/ Date this is
(Program considered as a
Chair)

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Atty. Rufino T. Lopez / 11.12.2022 Lourdes A. Deocariza / 10.12.2022
 NAME: Nullas, Stephanie Claire P.
condonation where the creditor has voluntarily and expressly stated that B’s
obligation would be extinguished once they got married.

c. Assuming B paid the P10M amount to Bishop, may B recover the amount
from A and C? Explain with reason.
- Yes, B can reimburse the money from A and C that is paid to Bishop.
Although they are in Solidary obligations, B still has the right to demand
payment because all three of them have agree to borrow the money, and
what B did was just to compensate for the sake of everyone and to do his
obligation.

d. What if A died during the existence of the obligation, what would Bishop do
to protect the indebted amount from him.

- Since they agreed on solidary obligation, Bishop has the right to demand the
debt from B and C because it is the obligation of B and C to entirely comply
to the creditor’s demand. In addition, in this type of obligation where a set of
people that are bound to the same obligation would be considered as one or
a whole. Therefore, even if A died, Bishop still has the right to demand entire
compliance from his debtors.

38. Justine, a young and successful entrepreneur has overpayment or excess in

payment of her tax obligation to the government via the BIR. She paid P10M in
2018 whereas she was supposed to pay only P5M. After 1 year, Justine filed a
claim of refund to the BIR and after lengthy and tedious deliberation, she was
adjudged entitled for the refund of her P5M on year 2021. But during the year
when BIR was ready to refund Justine of her claim for refund, the Government is
now demanding from Justine the amount of P5M as her tax obligation for the
year 2020. May the BIR refuse the release of P5M and instead use the same as
payment for her tax obligation for year 2020. Explain with reason. (5 points)

- No, because the transaction or refund from the Government was meant for
the time where Justine’s overpaid her taxes which is in 2018. Although the
refund amount was the same as the tax obligation in 2020, the BIR does not
have a right to refuse and consider it as a payment because it is still the asset
of Justine. This such action is undertaken to avoid confusion to the transaction
between the Government and the tax payer.

39. Karmela is a loyal employee and caregiver of Don Enrique Ayala. Through out
her services to Don Enrique, Karmela normally make advances against her
salary from Don Enrique and the amount of which accumulated to P1Million. In
the latter’s last few minutes on earth, he declared in his will that upon his death,
he is no longer interested in claiming back the borrowed advances of Karmela.
Is this Inter Vivos or Mortis Causa? And what is the intention of Don Enrique
towards Karmela. Explain with Legal Basis. (5 points)

- In the case of Don Enrique’s will, this is considered as Mortis Causa because
the donation or the extinguishment of obligation will take effect after the
death of the donor.

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Atty. Rufino T. Lopez / 11.12.2022 Lourdes A. Deocariza / 10.12.2022
 NAME: Nullas, Stephanie Claire P.
40. Steff is driving her new BMW 2022 Series along SLEX going to Manila. Vehicle
amounts to P5M. While traversing the Road from Canlubang and Cabuyao, Steff
was Hit by a vehicle with Vanity Plate named, “POGI 2022” driven and owned
by Mark Gabriel who was DUIA – Driving under Influence of Alcohol. Because of
the incident, the car driven by Steff was damaged physically, but luckily being a
person with a beautiful luck, Steff was not hurt nor traumatized by the incident.
Immediately, Police Report were made and Steff filed her claim from her Motor
Vehicle Insurer that estimated the damage at P2.5M, and to which the
insurance company assured her that same shall be attended properly. Can the
Insurance company claim from Mark Gabriel? Yes or No? Explain with Legal
Basis. (5 points)
- Yes, under subrogation when Steff acquired the service of an insurance
company she transfers the right to the insurance company when it is related
to an accident. Therefore, the insurance company has the right to pursue the
third party to pay for the damages.

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